Market Commentary

Making Cents of the Markets

It’s been a wild ride in markets this year, and we are happy we have managed it successfully! We would like to thank our clients for their commitment and dedication to our team throughout the past year. We enjoy working with you and your families and truly appreciate the trust that you have invested in us.

This will be our last Making Cents of the Markets of the year and we look forward to reconnecting with everyone in 2022!

 

Join us for our last Ready.Set.Retire! of 2021!

It has been a whirlwind in markets, and it’s likely to end as one of our strongest years in recent memory. Jon and Lori look back and discuss what investors learned from the past 12 months. Learn how to manage these short market pullbacks, define leading sectors, learn why bonds are not always safe, and what to do when investing in inflationary times.

Looking forward to our 2022 market outlook edition in early January!

Listen here.

 

Listen now to the most recent Making Cents of the Markets on CKNW, where we discussed markets and the US Federal Reserve Meeting. We also talked about year-end income planning, and how a financial plan can help you set out your cash flows for financial success!

Click to listen here.

 

Beyond the Markets

Bring your holiday plans to new heights this year with Fly Over Canada’s festive special, Soar with Santa. From now until January 3rd, take a trip to the North Pole with your feet dangling before a 20-metre spherical screen. Special effects, including wind, mist and scents, combine with the ride’s motion to create an unforgettable experience.

Book tickets here.

Be in the Know

North American markets pulled back slightly this week as investors digested news around the Omicron variant and the Fed aggressively reducing stimulus. Interest rates have started to move higher in certain countries as England, Mexico, and Norway all increased rates this week to combat inflation. The highlight of course was the US Federal Reserve that kept rates steady but planned for 3 rate increases in 2022. Key commodities like oil and copper held in well this week which could mean that the rate-hike fears are actually priced in.

Omicron continues to impact the world as the recent spread has led to another round of restrictions with many provinces in Canada rolling out limits on indoor social gatherings and imposing capacity limits on restaurants and retailers. Markets have remained resilient as Pfizer’s Chief Scientific Officer believes that Covid will eventually become an endemic within the next 2 years where it becomes a vaccinated-protected ailment like the flu. I’m sure we are all looking forward to seeing an end to this pandemic.

In Canada, we saw inflation remain at 4.7% in November which was in line with expectations as the main sources for the increase were gasoline, furniture, and food prices. Like the US, we expect that the first interest rate hike will occur in the middle of next year and inflation to start to trend lower soon. Retail sales fell 0.6% in September after a strong jump the previous month and came in better than expectations though we anticipate an eventual shift from people wanting goods to focusing more on services over the coming year. Next week we will continue to monitor markets closely with notable economic updates including personal income and spending out of the US.

 

Our Strategy

Our portfolios held in relatively well this week as we made minor shifts but generally held course. We continue to be cautiously optimistic and believe that positive seasonality from mid-December to January will take place once again. A favourable sign is that markets have held up quite well through the initial uncertainty around the Omicron variant as well as the Fed meeting this past week. These were the big hurdles we noted that the market had to get through and so far, so good!

Our plan is to continue to be diligent around our holdings and only to take action if needed. If conditions change for some reason, we will be sure to shift defensively as managing risk is integral to our success. Despite rising cases, the economy is on a much better footing today and expectations for next year call for further growth in earnings which is bullish for markets in the coming year.

 

Visual of the Week

As this is our final weekly newsletter for the year, we wish you and your families a wonderful time over the holiday season!

The comments and opinions expressed in this newsletter are solely the work of Pinkowski Wealth Management, not an official publication of Canaccord Genuity Corp., and may differ from the opinion of Canaccord Genuity Corp’s. Research Department. Accordingly, they should not be considered as representative of Canaccord Genuity Corp’s. beliefs, opinions or recommendations. All information is given as of the date appearing in this newsletter, is for general information only, does not constitute legal or tax advice, and the author Pinkowski Wealth Management does not assume any obligation to update it or to advise on further developments related. All information included herein has been compiled from sources believed to be reliable, but its accuracy and completeness is not guaranteed, nor in providing it do the author or Canaccord Genuity Corp. assume any liability.

CANACCORD GENUITY WEALTH MANAGEMENT IS A DIVISION OF CANACCORD GENUITY CORP., MEMBER-CANADIAN INVESTOR PROTECTION FUND AND THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA